Symantec 2016 Annual Report Download - page 154

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or less. The liability will be equal to the present value of lease payments. The asset will be based on the
liability. The standard is effective for the Company for the fiscal year beginning March 30, 2019. Early adoption
is permitted. Adoption of the standard will result in a gross up of our balance sheet for the right-of-use asset and
the lease liability for operating leases. It is not expected that adoption of the standard will have a material impact
to our operating results.
In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606):
Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The amendments finalize the
guidance in the new revenue standard on assessing whether an entity is a principal or an agent in a revenue
transaction. The conclusion impacts whether an entity reports revenue on a gross or net basis. The amendments
have the same effective date as the new revenue standard, which for the Company is the fiscal year beginning
March 31, 2018. The Company is currently evaluating the effect the standard will have on its Consolidated
Financial Statements.
In March 2016, the FASB issued ASU No. 2016-09, Compensation — Stock Compensation (Topic 718):
Improvements to Employee Share-Based Accounting. The amendments will require companies to recognize the
income tax effects of awards in the income statement when the awards vest or are settled. The guidance requires
companies to present excess tax benefits as an operating activity and cash paid to a taxing authority to satisfy
statutory withholding as a financing activity on the statement of cash flows. The guidance will also allow entities
to make an alternative policy election to account for forfeitures as they occur. The guidance is effective for the
Company for the fiscal year beginning April 1, 2017. The Company is currently evaluating the effect the standard
will have on its Consolidated Financial Statements.
In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606):
Identifying Performance Obligations and Licensing. The update provides guidance on accounting for licenses of
intellectual property (“IP”) and identifying performance obligations. The amendments clarify how an entity
should evaluate its promise when granting a license of IP. They also clarify when a promised good or service is
separately identifiable and allow entities to disregard items that are immaterial in the context of the contract. The
amendments have the same effective date as the new revenue standard, which for the Company is the fiscal year
beginning March 31, 2018. The Company is currently evaluating the effect the standard will have on its
Consolidated Financial Statements.
In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606):
Narrow-Scope Improvements and Practical Expedients. The update clarifies certain issues related to transition to
the new revenue guidance, as well as, assessing collectability, recognition of noncash consideration and
presentation of sales and other similar taxes in revenue transactions. The amendments have the same effective
date as the new revenue standard, which for the Company is the fiscal year beginning March 31, 2018. The
Company is currently evaluating the effect the standard will have on its Consolidated Financial Statements.
There was no other recently issued authoritative guidance that is expected to have a material impact to our
Consolidated Financial Statements through the reporting date.
Note 2. Fair Value Measurements
For assets and liabilities measured at fair value, such amounts are based on an expected exit price
representing the amount that would be received on the sale of an asset or paid to transfer a liability, as the case
may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions
that market participants would use in pricing an asset or liability. The authoritative guidance on fair value
measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring
basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the
hierarchical levels of inputs to measure fair value:
• Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in
active markets.
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